Growing steel demand in end-user industries including automotive, ship building, construction, and several other sectors will likely be an important driver for the global ferroalloy market. The product finds extensive application in the manufacturing of different grades of steel such as carbon steel, stainless steel, etc. Abundancy of iron ore and growing demand of different steel grades due to lack of viable substitutes will boost the industry growth in the coming years. Global steel industry production volume was estimated at over 1.5 billion tons in 2015, and will likely cross 2.5 billion tons by the end of 2024, growing at close to 5% CAGR. Increasing automobile production will augment the demand for different grades of steel, hence boosting the ferroalloy market demand.

Heavy operational costs in terms of mineral resources, raw materials, energy, machinery, transportation costs, and labor costs characterize the global ferroalloy market. Continuous monitoring of the production process is required to maintain the product quality. Moreover, several regional governments and regulatory bodies have mandated various mining regulations and industry standards due to the environmental and social impact of the iron & steel production industries. For instance, EPA circulated the Iron and Steel Effluent Guidelines and Standards in regulation 40 CFR Part 420 in 1974, which was later amended multiple times till 2005. These factors may pose hindrances in the overall ferroalloy market growth in the coming years.

Ferroalloy Market, By Product

Ferroalloy market product segment has been divided into ferromanganese, ferrochrome, ferrosilicon, and other alloys. Ferromanganese alloys is one of the most cost efficient product segment used in foundry industries to enhance the physical properties. This segment was valued at over USD 15 billion in 2015, and will likely grow at over 6% CAGR in the forecast timeframe. Easy availability of the product along with low price will signify the product demand in the upcoming years.

Ferrochrome alloys with different quantities of chromium is extensively used for providing stainless features to the steel by making them rust proof and enhancing their physical properties. High and escalating demand for stainless steel in automobile parts, medical and chemical equipment, household utensils, etc. will boost the product demand in the coming years. Ferrochrome product segment was worth more than a third of the global ferroalloy market in 2015 and will witness growth at close to 6% CAGR up to 2024.

Ferroalloy Market, By Application

Ferroalloy market application segment has been categorized into alloy steel, carbon steel, stainless steel, and others. Stainless steel has a wide range of application including household products and utensils, architectural designs, automobiles, underground and underwater pipelines, food and beverage containers, as well as accessories such as bolts, screws, etc. This segment accounted for over three quarters of the overall ferroalloy market in 2015, and will witness a significant growth owing to the increasing demand in various end-user industries.

Carbon steel is an iron alloy with different quantities of carbon content in order to control its hardness and brittleness. These products have superior structural value owing to their mechanical properties and find extensive application in construction of buildings and infrastructures, as well as in the manufacturing of steel wires and springs because of its elastic properties. Ferroalloy market for carbon steel segment was valued at over USD 900 million in 2015, and will likely grow at a decent rate in the forecast span.

Ferroalloy Market, By Region

Asia Pacific, driven by the heavy industrialization and constructional activities in China and India, accounted for a noteworthy share of the global ferroalloy market in 2015. In 2015, the region recorded over USD 25 billion and will grow at over 6% CAGR in the coming years. Rising automobile and shipbuilding industries in the region along with high infrastructural developments will catalyze the overall ferroalloy market demand throughout the forecast span.

Europe accounted for more than a fifth of the overall ferroalloy market size in 2015 owing to the industrial population in Germany, UK, France, and eastern European countries. The region will have a steady growth at more than 5% CAGR in the forecast period owing to the prevalence of several automobile manufacturing companies.

Competitive Market Share

Ferroalloy market competitive landscape is highly fragmented with the presence of a large number of large, medium and small scale manufacturing companies. The top five market players including Eurasian Natural Resources Corp., Sinosteel Jilin, S.C. Feral, China Minmetals, and Shanghai Shenjia accounted for less than a tenth of the overall ferroalloy market size in 2015.

Ferroalloys market will develop on the account of the product properties to enhance the characteristics of steels by the introduction of specific elements in desirable quantities in a technically and economically feasible way. They play major role in steel production and industrial development. The major users of alloy steel are the automotive industry, tubes, railways, springs, forgings, and various other engineering industries.

Asia Pacific will drive the overall ferroalloy market owing to the increasing industrial activities in the region. Ferrochrome applications for the manufacturing of stainless steel products will witness a significant growth in the upcoming years.

What Information does this report contain?

What was the historic market data from 2012 to 2015, what is the industry growth forecast from 2016 to 2024?